On June 21, the three major cryptocurrency trade associations in the United States collectively reached out to the House Ways and Means Committee, advocating for the approval of H.R. 9175, known as the Tax Clarity for Mining and Staking Act. This bill was put forth by Representative Mike Carey (R-OH).
The Blockchain Association, Crypto Council for Innovation (CCI), and Digital Chamber jointly characterized the legislation as “a solid compromise,” urging lawmakers to adopt it as is.
A longstanding controversy exists between the IRS and the cryptocurrency sector regarding taxes associated with mining and staking, a conflict that has persisted for over ten years.
Back in 2014, the IRS issued Notice 2014-21, which mandated that miners report the fair market value of mined Bitcoin as gross income at the time of its creation, rather than at the point of sale. This rule equates mined cryptocurrencies to wages: they are taxable upon receipt, irrespective of whether the miner converts them into cash.
In 2023, the situation deteriorated for stakers when the IRS released Revenue Ruling 2023-14, applying the same taxing rationale to proof-of-stake validators. According to this ruling, staking rewards are considered taxable income as soon as a validator earns them, which creates a cash flow dilemma: validators are required to pay taxes on assets they may not intend to sell.
This scenario places U.S.-based miners and stakers in a precarious position. Proof-of-work and proof-of-stake networks collectively secure over $1.7 trillion in digital assets. The trade organizations contend that compelling participants to recognize gains from illiquid rewards discourages domestic validation efforts and hands advantages to international competitors benefiting from more favorable tax conditions.
Implications of H.R. 9175 for Crypto Mining
While H.R. 9175 does not abolish taxes on mining or staking rewards, it offers taxpayers an option.
The proposed legislation allows miners and stakers to classify new digital assets as self-created property, enabling them to defer tax recognition until the assets are sold. Additionally, it permits grantor trusts that hold digital assets to receive staking rewards without losing their trust status — a vital adjustment for institutional players operating through trust frameworks.
On June 9, the Ways and Means Committee conducted a comprehensive hearing on digital asset taxation, the first in several years. During this session, six tax-related bills concerning digital assets were discussed, including H.R. 9175.
The letter sent on June 21 was endorsed by Blockchain Association CEO Summer Mersinger, CCI CEO Ji Hun Kim, and Digital Chamber CEO Cody Carbone.
Their collaborative effort signifies an industry-wide initiative at a time of notable legislative momentum. Senator Cynthia Lummis is spearheading similar initiatives in the Senate, proposing laws to postpone taxes on mining and staking until the assets are sold — a concept that aligns closely with H.R. 9175.
Time is a critical factor. Congress has a limited legislative window to act before the August recess, and Lummis, a prominent advocate for digital asset reform in the Senate, is set to leave in January 2027. A wider reform initiative for crypto taxes has garnered support across the crypto community, with groups urging Congress to apply consistent treatment to digital assets, similar to other asset classes.
For miners and stakers who have existed under a veil of tax uncertainty since the inception of Bitcoin, H.R. 9175 presents a significant legislative opportunity for relief.